Residential Sale and Purchase Contract: Comprehensive Addendum

Residential Sale and Purchase Contract: Comprehensive Addendum FLORIDA ASSOCIATION OF REALTORS®

3*

The clauses below will be incorporated into the Contract between __________________________________________ (Seller) and ____________________________________________ (Buyer) concerning the Property described as __________________ ___________________________________________________________________________________ only if initialed by all parties:

4

ASSOCIATION DISCLOSURES

5*

56

(_____) (_____) - (_____)(_____) A. Condominium Association: The Property is a condominium which is subject to the rules and regulations of a condominium association (“Association”). Seller’s warranty under Paragraph 8 of the Contract or Paragraph H of the Comprehensive Addendum (if applicable) extend to the unit and limited common elements appurtenant to the Property and not to any common elements or any other property. (1) Documents: Seller will, at Seller’s expense, deliver to Buyer the condominium documents referenced in subparagraph (8) below no later than 3 days from Effective Date (if Buyer has already received the required documents, indicate receipt by initialing here (_____) (_____) Date received __________________, ______). If this Contract does not close, Buyer will immediately return the documents to Seller, failing which Buyer authorizes Escrow Agent to reimburse Seller $__________ from the deposit for the cost of the documents. (2) Association Approval: If the condominium declaration or bylaws give the Association the right to approve Buyer as a purchaser, this Contract is contingent on such approval by the Association. Buyer will apply for approval within _______ days from Effective Date and use diligent effort to obtain approval, including making personal appearances and paying related fees if required. Buyer and Seller will sign and deliver any documents required by the Association to complete the transfer. If Buyer is not approved, this Contract will terminate and Seller will return Buyer’s deposit unless this Contract provides otherwise. (3) Right of First Refusal: If the Association has a right of first refusal to buy the Property, this Contract is contingent on the Association deciding not to exercise such right. Seller will, within 3 days from receipt of the Association’s decision, give Buyer written notice of the decision. If the Association exercises its right of first refusal, this Contract will terminate, Buyer’s deposit will be refunded unless this Contract provides otherwise and Seller will pay Broker’s full commission at closing in recognition that Broker procured the sale. (4) Application/Transfer Fees: Buyer will pay any application and/or transfer fees charged by the Association. (5) Parking: Seller will assign to Buyer at closing parking space(s) ___________, ____________. (6) Fees: Seller will pay all fines imposed against the Unit as of Closing Date and any fees the Association charges to provide information about its fees or the Property, and will bring maintenance and similar periodic fees and rents on any recreational areas current as of Closing Date. If, after the Effective Date, the Association imposes a special assessment for improvements, work or services, Seller will pay all amounts due before Closing Date and Buyer will pay all amounts due after Closing Date. Seller represents that he/she is not aware of any pending special or other assessment that the Association is considering except as follows:_________________________ ___________________________________________________________________________________________________________ Seller represents that he/she is not aware of pending or anticipated litigation affecting the Property or the common elements, if any, except as follows: ______________________________________________________________________________________ ___________________________________________________________________________________________________________ Seller represents that the current maintenance fee is: $________________ per _________________________ to __________________________________________________________ $________________ per _________________________ to __________________________________________________________ $________________ per _________________________ to __________________________________________________________ and that there ❏ is ❏ is not a recreation or land lease with the Property. If there is a recreation or land lease, the current payment is $_______________ per month. (7) Sprinkler System: IF THE UNIT OWNERS VOTED TO FOREGO RETROFITTING EACH UNIT WITH A FIRE SPRINKLER OR OTHER ENGINEERED LIFE SAFETY SYSTEM, SELLER SHALL PROVIDE THE BUYER, BEFORE CLOSING, A COPY OF THE CONDOMINIUM ASSOCIATION’S NOTICE OF THE VOTE TO FOREGO RETROFITTING. (8) Buyer Acknowledgement / Seller Disclosure: (Check whichever applies) ❏ THE BUYER HEREBY ACKNOWLEDGES THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF THE DECLARATION OF CONDOMINIUM, ARTICLES OF INCORPORATION OF THE ASSOCIATION, BYLAWS AND RULES OF THE ASSOCIATION, AND A COPY OF THE MOST RECENT YEAR-END FINANCIAL INFORMATION AND FREQUENTLY ASKED QUESTIONS AND ANSWERS DOCUMENT MORE THAN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, PRIOR TO EXECUTION OF THIS CONTRACT. ❏ THIS AGREEMENT IS VOIDABLE BY BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER’S INTENTION TO CANCEL WITHIN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT BY THE BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE DECLARATION OF CONDOMINIUM, ARTICLES OF INCORPORATION, BYLAWS AND RULES OF THE ASSOCIATION, AND A COPY OF THE MOST RECENT YEAR-END FINANCIAL INFORMATION AND FREQUENTLY ASKED QUESTIONS AND ANSWERS DOCUMENT IF SO REQUESTED IN WRITING. ANY PURPORTED WAIVER OF THESE VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER MAY EXTEND THE TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER THE BUYER RECEIVES THE DECLARATION, ARTICLES OF INCORPORATION, BYLAWS AND RULES OF THE ASSOCIATION, AND A COPY OF THE MOST RECENT YEAR-END FINANCIAL INFORMATION AND FREQUENTLY ASKED QUESTIONS AND ANSWERS DOCUMENT IF REQUESTED IN WRITING. BUYER’S RIGHT TO VOID THIS AGREEMENT SHALL TERMINATE AT CLOSING.

57*

FARA-8

1* 2*

6 7 8 9 10* 11* 12* 13 14* 15 16 17 18 19 20 21 22 23* 24 25 26 27 28* 29* 30* 31* 32* 33 34* 35* 36* 37* 38* 39 40 41 42 43* 44 45 46 47* 48 49 50 51 52 53 54 55

Rev. 10/04

© 2004

Florida Association of REALTORS®

All Rights Reserved

Page _____of Addendum No._____

1* 2* 3* 4* 5* 6 7 8 9 10 11 12* 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

29* 30 31* 32* 33*

34 35 36 37 38 39

40* 41 42 43 44 45 46* 47 48 49* 50 51 52 53

The clauses below will be incorporated into the Contract between __________________________________________ (Seller) and ____________________________________________ (Buyer) concerning the Property described as __________________ ___________________________________________________________________________________ only if initialed by all parties: (_____) (_____) - (_____)(_____) B. Homeowners’ Association: The Property is located in a community with a ❏ voluntary ❏ mandatory (see the disclosure summary below) homeowners’ association (“Association”). Seller’s warranty under Paragraph 8 of the Contract or Paragraph H of the Comprehensive Addendum (if applicable) extend only to the Property and does not extend to common areas or facilities described below. Notice: Association documents may be obtained from the county record office or, if not public record, from the developer or Association manager. The Property may be subject to recorded restrictive covenants governing the use and occupancy of properties in the community and may be subject to special assessments. (1) Association Approval: If the Association documents give the Association the right to approve Buyer as a purchaser, this Contract is contingent on such approval by the Association. Buyer will apply for approval within _____ days from Effective Date (5 days if left blank) and use diligent effort to obtain approval, including making personal appearances and paying related fees if required. Buyer and Seller will sign and deliver any documents required by the Association to complete the transfer. If Buyer is not approved, this Contract will terminate and Seller will return Buyer’s deposit unless this Contract provides otherwise. (2) Right of First Refusal: If the Association has a right of first refusal to buy the Property, this Contract is contingent on the Association deciding not to exercise such right. Seller will, within 3 days from receipt of the Association’s decision, give Buyer written notice of the decision. If the Association exercises its right of first refusal, this Contract will terminate, Buyer’s deposit will be refunded unless this Contract provides otherwise and Seller will pay Broker’s full commission at closing in recognition that Broker procured the sale. (3) Fees: Buyer will pay any application, transfer and initial membership fees charged by the Association. Seller will pay all fines imposed against the Property as of Closing Date and any fees the Association charges to provide information about its fees or the Property, and will bring maintenance and similar periodic fees and rents on any recreational areas current as of Closing Date. If, after the Effective Date, the Association imposes a special or other assessment for improvements, work or services, Seller will pay all amounts due before Closing Date and Buyer will pay all amounts due after Closing Date. Seller represents that he/she is not aware of any pending special or other assessment that the Association is considering except as follows: $________________ per __________________ to _________________________________________________________________ The following dues/maintenance fees are currently charged by the homeowners’ association: $________________ per __________________ to _________________________________________________________________ $________________ per __________________ to _________________________________________________________________ $________________ per __________________ to _________________________________________________________________ (4) Disclosure Summary for Mandatory Associations: IF THE DISCLOSURE SUMMARY REQUIRED BY SECTION 720.401, FLORIDA STATUTES, HAS NOT BEEN PROVIDED TO THE PROSPECTIVE PURCHASER BEFORE EXECUTING THIS CONTRACT FOR SALE, THIS CONTRACT IS VOIDABLE BY BUYER BY DELIVERING TO SELLER OR SELLER’S AGENT OR REPRESENTATIVE WRITTEN NOTICE OF THE BUYER’S INTENTION TO CANCEL WITHIN 3 DAYS AFTER RECEIPT OF THE DISCLOSURE SUMMARY OR PRIOR TO CLOSING, WHICHEVER OCCURS FIRST. ANY PURPORTED WAIVER OF THIS VOIDABILITY RIGHT HAS NO EFFECT. BUYER’S RIGHT TO VOID THIS CONTRACT SHALL TERMINATE AT CLOSING. Disclosure Summary For (Name of Community) ________________________________________________________________: (1) AS A PURCHASER OF PROPERTY IN THIS COMMUNITY, YOU WILL BE OBLIGATED TO BE A MEMBER OF A HOMEOWNERS’ ASSOCIATION. (2) THERE HAVE BEEN OR WILL BE RECORDED RESTRICTIVE COVENANTS GOVERNING THE USE AND OCCUPANCY OF PROPERTIES IN THIS COMMUNITY. (3) YOU WILL BE OBLIGATED TO PAY ASSESSMENTS TO THE ASSOCIATION. ASSESSMENTS MAY BE SUBJECT TO PERIODIC CHANGE. IF APPLICABLE, THE CURRENT AMOUNT IS $__________________ PER ______________. YOU WILL ALSO BE OBLIGATED TO PAY ANY SPECIAL ASSESSMENTS IMPOSED BY THE ASSOCIATION. SUCH SPECIAL ASSESSMENTS MAY BE SUBJECT TO CHANGE. IF APPLICABLE, THE CURRENT AMOUNT IS $_________________ PER _______________. (4) YOU MAY BE OBLIGATED TO PAY SPECIAL ASSESSMENTS TO THE RESPECTIVE MUNICIPALITY, COUNTY, OR SPECIAL DISTRICT. ALL ASSESSMENTS ARE SUBJECT TO PERIODIC CHANGE. (5) YOUR FAILURE TO PAY SPECIAL ASSESSMENTS OR ASSESSMENTS LEVIED BY A MANDATORY HOMEOWNERS’ ASSOCIATION COULD RESULT IN A LIEN ON YOUR PROPERTY.

(See Continuation) 54*

FARA-8

Rev. 10/04

© 2004


All Rights Reserved


55* 56 57 58* 59 60 61 62 63 64 65 66

(_____) (_____) - (_____)(_____) B. Homeowners’ Association (CONTINUATION) (6) THERE MAY BE AN OBLIGATION TO PAY RENT OR LAND USE FEES FOR RECREATIONAL OR OTHER COMMONLY USED FACILITIES AS AN OBLIGATION OF MEMBERSHIP IN THE HOMEOWNERS’ ASSOCIATION. IF APPLICABLE, THE CURRENT AMOUNT IS $_________________ PER _____________. (7) THE DEVELOPER MAY HAVE THE RIGHT TO AMEND THE RESTRICTIVE COVENANTS WITHOUT THE APPROVAL OF THE ASSOCIATION MEMBERSHIP OR THE APPROVAL OF THE PARCEL OWNERS. (8) THE STATEMENTS CONTAINED IN THIS DISCLOSURE FORM ARE ONLY SUMMARY IN NATURE, AND, AS A PROSPECTIVE PURCHASER, YOU SHOULD REFER TO THE COVENANTS AND THE ASSOCIATION GOVERNING DOCUMENTS BEFORE PURCHASING PROPERTY. (9) THESE DOCUMENTS ARE EITHER MATTERS OF PUBLIC RECORD AND CAN BE OBTAINED FROM THE RECORD OFFICE IN THE COUNTY WHERE THE PROPERTY IS LOCATED, OR ARE NOT RECORDED AND CAN BE OBTAINED FROM THE DEVELOPER.

67

Buyer acknowledges receipt of this summary before signing this Contract.

68* 69

__________________________________ ______________ Buyer Date

70*

FARA-8

Rev. 10/04

© 2004


__________________________________ ______________ Buyer Date

All Rights Reserved


3*


4

FINANCING

5*

(_____) (_____) - (_____)(_____) C. Seller Financing: Buyer will execute a purchase money note and mortgage to Seller that ❏ is ❏ is not subordinate to any third party financing in the amount of $______________________, bearing annual interest at _____% and payable as follows: _____________________________________________________________________________ ___________________________________________________________________________________________________________ The mortgage, note, and any security agreement will be in a form acceptable to Seller and following forms generally accepted in the county where the Property is located; will provide for a late payment fee and acceleration at the mortgagee’s option if Buyer defaults; will give Buyer the right to prepay without penalty all or part of the principal at any time(s) with interest only to date of payment; will be due on conveyance or sale; and will require Buyer to keep Property insured, with Seller as additional named insured, against loss by fire (and flood, if Property is in a flood zone) with extended coverage in an amount not less than the greater of the amount of the purchase money mortgage and note or full replacement value for the real property. Buyer will provide Seller by March 1 each year with written evidence that the real property taxes have been paid in full for the previous year. Buyer authorizes Seller to obtain credit, employment and other necessary information to determine creditworthiness for the financing. Seller will provide written notice to Buyer within 10 days from Effective Date if Seller will not make the loan. If no notice is provided, Seller will provide the requested Seller financing.

1* 2*

6* 7* 8* 9 10 11 12 13 14 15 16 17 18 19* 20* 21* 22* 23* 24 25* 26* 27* 28 29 30 31 32* 33 34 35 36 37 38 39 40* 41* 42 43 44 45* 46 47 48 49 50 51 52 53 54 55

(_____)(_____) - (_____)(_____) D. Mortgage Assumption: Buyer will take subject to and assume and pay existing first mortgage to ___________________________________________________ LN# _________________________ in the approximate amount of $_______________________ currently payable at $____________ per month including principal, interest, ❏ taxes and insurance and having a ❏ fixed ❏ other (describe) ____________________________________________________________ interest rate of _______% which ❏ will ❏ will not escalate upon assumption. Any variance in the mortgage will be adjusted in the balance due at closing with no adjustment to purchase price. Buyer will pay assumption/transfer fee and purchase Seller’s escrow account dollar for dollar. If the lender disapproves Buyer, or the interest rate upon transfer exceeds ______% or the assumption/transfer fee exceeds $__________, this agreement will terminate and Buyer’s deposit(s) will be returned unless either party elects to pay the excess. (_____)(_____) - (_____)(_____) E. FHA Financing: (Buyer will be referred to as “purchaser” in the following statement) “It is expressly agreed that notwithstanding any other provisions of this contract, the purchaser shall not be obligated to complete the purchase of the property described herein or to incur any penalty by forfeiture of earnest money deposits or otherwise unless the purchaser has been given in accordance with HUD/FHA or VA requirements a written statement by the Federal Housing Commissioner, Department of Veterans Affairs, or a Direct Endorsement lender setting forth the appraised value of the property of not less than $_____________________. The purchaser shall have the privilege and option of proceeding with consummation of the contract without regard to the amount of the appraised valuation. The appraised valuation is arrived at to determine the maximum mortgage the Department of Housing and Urban Development will insure. HUD does not warrant the value nor the condition of the property. The purchaser should satisfy himself/herself that the price and condition of the property are acceptable.” If Buyer elects to proceed with the Contract without regard to the amount of reasonable value established by the Federal Housing Commissioner, U.S. Department of Veterans Affairs, or Direct Endorsement lender, such election must be made within 3 days from Buyer’s receipt of the appraisal. (1) Fees, Prepayments: Seller will pay tax service, underwriting and document preparation fees required by the lender; recording fees for assigning Buyer’s mortgage and ___________________________________________________________ up to a maximum cost of $______________ ($250.00 if left blank), Buyer will pay all prepayments and escrows for taxes, hazard insurance, FHA insurance, and flood insurance, when applicable. (2) Repairs: In the event a lender, as a result of the FHA appraisal, requires repairs to items not covered by Seller’s warranty in Paragraph 8 of the Contract or Paragraph H of the Comprehensive Addendum (if applicable), Seller will make required repairs up to a maximum cost to Seller of ____________________ ($250.00 if left blank). Required repairs to warranted items are subject to the Repair Limit defined in the Contract. If the cost of repairs to warranted or unwarranted items exceeds the respective limit, Seller will, within 3 days after receiving notice of the excess cost, deliver to Buyer written notice of Seller’s intent to pay some, all, or none of the excess amount. If Seller pays less than the full amount of the excess cost, Buyer may pay the balance or cancel the Contract. Buyer’s election must be in writing and provided to Seller within 3 days after receipt of Seller’s notice. (3) Home Inspection: Buyer has received and signed the “For Your Protection: Get a Home Inspection” notice. (4) FHA Certification: Buyer and Seller are signatories to the Contract. The selling real estate agent or broker involved in this transaction states: I certify that the terms of this Contract for Sale and Purchase are true and correct to the best of my knowledge and belief and that any other agreements entered into by any of these parties in connection with this transaction are part of, or attached to, the Contract.

56*

_____________________________

____________

_____________________________

____________

57

Selling Sales Associate or Broker

Date

Listing Sales Associate or Broker

Date

58*

FARA-8

Rev. 10/04

© 2004


All Rights Reserved


1* 2* 3* 4* 5 6 7 8 9 10 11 12* 13 14 15* 16 17 18

The clauses below will be incorporated into the Contract between ____________________________________________ (Seller) and ____________________________________________ (Buyer) concerning the Property described as __________________ _________________________________________________________________________________ only if initialed by all parties: (_____) (_____) - (_____)(_____) F. VA Financing: “It is expressly agreed that, notwithstanding any other provision of this Contract, the Buyer will not incur any penalty by forfeiture of earnest money or otherwise be obligated to complete the purchase of the property described herein, if the Contract purchase price or cost exceeds the reasonable value of the property as established by the U.S. Department of Veterans Affairs. The Buyer will, however, have the privilege and option of proceeding with the consummation of this Contract without regard to the amount of reasonable value established by the U.S. Department of Veterans Affairs.” If Buyer elects to proceed with the Contract without regard to the amount of reasonable value established by the U.S. Department of Veterans Affairs, such election must be made within 3 days from Buyer’s receipt of the appraisal. Seller will pay up to $_________________ ($250.00 if left blank) toward Buyer’s loan and closing costs. In the event a lender, as a result of the VA appraisal, requires repairs to items not covered by Seller’s warranty in Paragraph 8 of the Contract or Paragraph H of the Comprehensive Addendum (if applicable), Seller will make required repairs up to a maximum cost to Seller of $_________________ ($250.00 if left blank). Required repairs to warranted items are subject to the Repair Limit defined in the Contract. If the cost of repairs to warranted or unwarranted items exceeds the respective repair limit, Seller will, within 3 days from receipt of notice of the excess cost, deliver to Buyer written notice of Seller’s intent to pay the excess cost or cancel the Contract.

22

(_____) (_____) - (_____)(_____) G. New Mortgage Rates: Buyer will not be obligated to complete the purchase unless Buyer is able to obtain the financing at a fixed interest rate not exceeding _______% or a variable/adjustable interest rate not exceeding _______% at origination, with no more than ______ discount points charged. Buyer ❏ will ❏ will not accept a balloon mortgage.

23*

FARA-8

19* 20* 21*

Rev. 10/04

© 2004


All Rights Reserved


3*


4

PROPERTY

5*

22

(_____) (_____) - (_____)(_____) H. As Is With Right to Inspect: This clause replaces Paragraphs 6 and 8 of the Contract but does not modify or replace Paragraph 9. Paragraph 5(a) Repair and Termite Repair Limits are 0%. Seller makes no warranties other than marketability of title. Seller will keep the Property in the same condition from Effective Date until closing, except for normal wear and tear (“maintenance requirement”), and will convey the Property in its “as is” condition with no obligation to make any repairs. Buyer may, at Buyer’s expense, conduct professional and walk-through inspections as described below. If Buyer fails to timely conduct any inspection which Buyer is entitled to make under this paragraph, Buyer waives the right to the inspection and accepts the Property “as is.” Seller will provide access and utilities for Buyer’s inspections. Buyer will repair all damages to the Property resulting from the inspections and return the Property to its pre-inspection condition. Buyer may, by ______________________, _______ (“Inspection Period”) (within 10 days from Effective Date if left blank) make any and all inspections of the Property. The inspection(s) will be by a person who specializes in and holds an occupational license (if required by law) to conduct home inspections or who holds a Florida license to repair and maintain the items inspected. Buyer may cancel this Contract by written notice to Seller within ____ days (within 5 days if left blank) from the end of the Inspection Period if the estimated cost of treatment and repairs determined to be necessary by Buyer is greater than $_______________. For the cancellation to be effective, Buyer must include in the written notice a copy of the inspector’s written report, if any, and treatment and repair estimates from the inspector or person(s) holding an appropriate Florida license to repair the items inspected. Any conditions not reported in a timely manner will be deemed acceptable to Buyer. Buyer may, on the day before Closing Date or any other time agreeable to the parties, walk through the Property solely to verify that Seller has fulfilled the contractual obligations. No other issues may be raised as a result of the walk-through inspection.

23*

(_____) (_____) - (_____)(_____) I. Inspections (check as applicable)

1* 2*

6 7 8 9 10 11 12 13* 14 15 16* 17* 18 19 20 21

24* 25 26 27 28 29* 30 31 32 33 34 35 36 37

❏ (1) Self-Inspection: Buyer and Seller agree that unlicensed persons, including the parties themselves, may conduct the inspections (except for Buyer’s wood-destroying organism inspection) permitted in Paragraph 8 of the Contract or Paragraph H of this Addendum. However, if the inspection findings differ and the parties cannot resolve the differences, Buyer and Seller together will choose, and will equally split the cost of, a professional inspector as defined in Paragraph 8 of the Contract whose report will be binding on the parties. ❏ (2) Right to Cancel Based on Inspection Results: Within the Inspection Period provided in Paragraph 6 of the Contract, Buyer will, at Buyer’s sole expense, complete any desired inspections of the Property in addition to those referenced in Paragraphs 7 and 8(a)(2). If Buyer is for any reason unhappy with a condition of the Property noted in during the inspection results, Buyer may cancel the Contract by delivering written notice to Seller along with a copy of the inspection results within 2 days from the end of the Inspection Period, and Buyer will, at Buyer’s sole expense, immediately repair all damage resulting from Buyer’s inspections and restore the Property to its pre-inspection condition; this obligation will survive termination of the Contract. If the Contract is not cancelled, the parties’ obligations remain as specified in the Contract. This Paragraph does not modify or replace the rights and obligations of the parties under Paragraph 9 of the Contract.

46*

(_____) (_____) - (_____)(_____) J. Insulation Disclosure (New Homes Only): Insulation has been or will be installed in the new residence as follows: Location Type Thickness Manufacturer R-Value Interior Walls Flat Ceiling Area Sloped Ceiling Area Common Walls Between House & Garage Exterior Walls Other ___________________________

47*

FARA-8

38* 39 40 41* 42* 43* 44* 45*

Rev. 10/04

© 2004


All Rights Reserved


1* 2* 3* 4* 5 6 7 8 9 10 11 12 13 14 15* 16* 17* 18* 19 20* 21 22 23 24 25 26 27 28 29

The clauses below will be incorporated into the Contract between __________________________________________ (Seller) and ____________________________________________ (Buyer) concerning the Property described as __________________ ___________________________________________________________________________________ only if initialed by all parties: (_____) (_____) - (_____)(_____) K. Pre-1978 Housing Lead-Based Paint Warning Statement: “Every purchaser of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified that such property may present exposure to lead from lead-based paint that may place young children at risk of developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligence quotient, behavioral problems, and impaired memory. Lead poisoning also poses a particular risk to pregnant women. The seller of any interest in residential real property is required to provide the buyer with any information on lead-based paint hazards from risk assessments or inspections in the seller’s possession and notify the buyer of any known lead-based paint hazards. A risk assessment or inspection for possible lead-based paint hazards is recommended prior to purchase.” For purposes of this addendum, lead-based paint will be referred to as “LBP” and lead-based paint hazards will be referred to as “LBPH.” (1) LBP/LBPH in Housing: Seller has no knowledge of LBP/LBPH in the housing and no available LBP/LBPH records or reports, except as indicated: (describe all known LBP/LBPH information, list all available documents pertaining to LBP/LBPH and provide documents to Buyer before accepting Buyer’s offer) ______________________________________ ________________________________________________________________________________________________________ ________________________________________________________________________________________________________ ________________________________________________________________________________________________________ (2) Lead-Based Paint Hazards Inspection: Buyer waives the opportunity to conduct a risk assessment or inspection for the presence of LBP/LBPH unless this box is checked (❏ Buyer may, within the Inspection Period, conduct a risk assessment or inspection for the presence of LBP/LBPH in accordance with the provisions of paragraph 8(a) or H. LBP/LBPH conditions that are unsatisfactory to Buyer will be treated as “warranted items” for purposes of paragraphs 8(a)(2) and (3) only). (3) Certification of Accuracy: Buyer has received the pamphlet entitled “Protect Your Family From Lead in Your Home” and all of the information specified in paragraph (1) above. Licensee has notified Seller of Seller’s obligations to provide and disclose information regarding lead-based paint and lead-based paint hazards in the property as required by federal law (42 U.S.C. 4852d) and is aware of his or her obligation to ensure compliance with federal lead-based paint law. Buyer, Seller and each licensee has reviewed the information above and certifies, to the best of his or her knowledge, that the information he or she has provided is true and accurate.

30*

_____________________________

__________________

_____________________________

31

Buyer

Date

Seller

Date

32*

_____________________________

__________________

_____________________________

__________________

33

Buyer

Date

Seller

Date

34*

_____________________________

__________________

_____________________________

__________________

35

Selling Licensee

Date

Listing Licensee

Date

36* 37* 38 39* 40* 41* 42 43* 44* 45 46 47

__________________

(_____) (_____) - (_____)(_____) L. Insurance: (check whichever applies) ❏ (1) Homeowners Insurance: If Buyer is unable to obtain basic Homeowner or Fire and Hazard Coverage from a standard carrier or the Citizen’s Property Insurance Corporation at a first year annual premium not to exceed $____________ or ____________% of the purchase price and/or flood insurance through the National Flood Insurance Program at a first year premium not to exceed $____________ or ____________% of the purchase price by _______________, _________ (no later than 5 days prior to Closing Date if left blank), Buyer may cancel the Contract by delivering written notice to the Seller. ❏ (2) Flood Insurance: Buyer is notified that the Property is located in an area that: ❏ is a defined floodable area and flood insurance is required. ❏ was declared a flood disaster area after September 23, 1994 and received federal disaster relief assistance on the condition that flood insurance be obtained in accordance with applicable federal law. Buyer is required to obtain such flood insurance if the Property is not so insured as of the date of transfer and will be required to maintain flood insurance in accordance with applicable federal law with respect to the Property.

51*

(_____) (_____) - (_____)(_____) M. Housing for Older Persons: Buyer acknowledges that the owners’ association, developer or other housing provider intends the Property to provide housing for older persons as defined by federal law. While Seller and Broker make no representation that the Property actually qualifies as housing for older persons, the housing provider has stated that it provides housing for persons who are ❏ 62 years of age and older. ❏ 55 years of age and older.

52*

FARA-8

48* 49 50

Rev. 10/04

© 2004


All Rights Reserved


3*

The clauses below will be incorporated into the Contract between ____________________________________________ (Seller) and ____________________________________________ (Buyer) concerning the Property described as __________________ _________________________________________________________________________________ only if initialed by all parties:

4

MISCELLANEOUS CLAUSES

5*

(_____) (_____) - (_____)(_____) N. Unimproved and/or Agricultural Property: If the Property is an unimproved parcel of land and is intended to be improved for residential or other purposes, Buyer has __________ days, through consultation with appropriate public authorities or otherwise, to be satisfied that either public sewerage and water are available to the Property or that the Property will be approved for the installation of a well and/or private sewerage disposal system and that existing zoning and other pertinent regulations, including concurrency, allow Buyer’s intended use of the Property.

1* 2*

6* 7 8 9 10* 11* 12 13 14* 15* 16* 17 18* 19 20 21* 22 23 24* 25 26 27 28 29* 30 31* 32* 33* 34 35 36 37 38* 39 40* 41* 42* 43* 44 45* 46 47 48* 49

(_____) (_____) - (_____)(_____) O. Interest-Bearing Escrow Account: All deposits will be held in an interest bearing escrow account with all accrued interest to be paid to _____________________________________________________________ at closing. Deposits will accrue interest only from the date the bank receives and credits them through the date Escrow Agent is notified that the transaction is scheduled for closing and the funds are transferred. Escrow Agent is authorized to deduct a $______________________ service charge from the earned interest before disbursing the funds. (_____) (_____) - (_____)(_____) P. Back-up Contract: (Check whichever applies) ❏ (1) This back-up Contract is subject to the termination of a prior executed contract between Seller and a third party for the sale of the Property. If the prior executed contract is terminated and Seller delivers written notice of the termination to Buyer before 5:00 p.m. on _______________________, _______, this contingency will be removed and this back-up Contract will move into first position. If Buyer does not receive notice of the prior contract’s termination by the above deadline, Buyer may cancel this back-up Contract at any time and Buyer’s deposit will be refunded. ❏ (2) Seller will have the right to continue to show the Property and solicit and enter into bona fide back-up purchase contracts with third parties that are subject to the termination of this primary Contract. Upon entering into a back-up contract, Seller will give Buyer a copy of the back-up contract with the third parties’ identification and purchase price information obliterated. To continue with this primary Contract, Buyer must make an additional deposit of $___________ within 72 hours (to be computed as consecutive hours, not business days) from receipt of the back-up contract. By giving the additional deposit to Escrow Agent within the 72 hour period, Buyer waives all contingencies for financing and sale of Buyer’s property and the parties will close on Closing Date. The additional deposit will be credited to Buyer at closing. If Buyer fails to timely make the additional deposit, this primary Contract will terminate and Buyer’s deposit will be refunded. (_____) (_____) - (_____)(_____) Q. Broker - Personal Interest in Property: _____________________________ has an active or inactive real estate license and has a personal interest in the property: (specify if licensee is related to a party, is acting as Buyer or Seller, etc.) _____________________________________________________________________________________________. (_____) (_____) - (_____)(_____) R. Rentals:(check whichever applies) ❏ (1) Pre-Occupancy Agreement: If Buyer occupies the Property before closing, Buyer will accept the Property in its existing condition on the date of occupancy, relieving Seller of any additional repair or treatment obligations, and will maintain the Property and assume all liability for and risk of loss to it from the date of occupancy. Effective on the date of occupancy, this clause replaces Paragraph 9 of the Contract. Buyer and Seller will sign and deliver a written lease containing mutually agreeable terms concerning Buyer’s pre-closing occupancy of the Property and prepared at Buyer’s expense. ❏ (2) Post-Occupancy Agreement: Buyer and Seller will sign and deliver a written lease, containing mutually agreeable terms concerning Seller’s occupancy of the Property after Closing Date and prepared at Seller’s expense. ❏ (3) Existing Tenant: The Property is currently used as a rental property and Buyer’s rights will be subject to those of existing tenants. Seller will, within _____ days from Effective Date and at Seller’s expense, deliver to Buyer current copies of the rent roll; leases; income and expense statements for the period January 1, _______ through December 31, _______, as evidence that the Property generated income of $____________________ against expenses of $____________________; and agreements with third parties that will remain in effect after closing. Buyer may terminate this Contract by written notice to Seller within _____ days from Effective Date if the statements differ materially from Seller’s representations. If Buyer fails to provide timely written notice, Buyer will be deemed to waive this contingency. Seller will assign leases and rental agreements, and transfer deposits and advance rents, to Buyer at closing. ❏ (4) Vacating Tenant: The Property is currently used as a rental property. Seller will ensure that the existing tenant vacates the Property prior to the time agreed upon for the Walk-Through Inspection.

55

(_____) (_____) - (_____)(_____) S. Sale/Lease of Buyer’s Property: This Contract is contingent on the lease or closing of Buyer’s property located at ________________________________________________________________________________. If Buyer’s property is not closed or subject to a signed lease acceptable to Buyer’s lender by _____________________, _______, (“Deadline”), Buyer will, within 3 days from Deadline, provide Seller with written notice canceling this Contract, and Seller will refund Buyer’s deposit. If Buyer does not timely provide written notice of cancellation, this contingency will be deemed removed.

56*

FARA-8

50* 51* 52* 53* 54

Rev. 10/04

© 2004


All Rights Reserved


1* 2* 3* 4* 5* 6* 7 8 9* 10* 11* 12* 13 14 15 16* 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32* 33 34 35 36

The clauses below will be incorporated into the Contract between ____________________________________________ (Seller) and ____________________________________________ (Buyer) concerning the Property described as __________________ _________________________________________________________________________________ only if initialed by all parties: (_____) (_____) - (_____)(_____) T. Rezoning: Buyer will have until ______________________, _______ to obtain the following zoning for the Property from the appropriate government agency: Zoning ___________________ for use of the Property as ______________________________________________________________________________________. Seller will sign all forms required by the government agency. Buyer will pay all costs associated with the rezoning application and proceedings. If rezoning is not obtained, this Contract will terminate and Buyer’s deposit will be refunded. (_____) (_____) - (_____)(_____) U. Assignment: Seller agrees that Buyer may assign this Contract to _____________________ ___________________________________________________________________________________________________________. Buyer will deliver a copy of the assignment to Seller and ❏ will ❏ will not be released from the duty to perform this Contract. (_____) (_____) - (_____)(_____) V. Property Disclosure Statement: This offer is contingent on Seller completing, signing and delivering to Buyer a written real property disclosure statement within 3 days from Effective Date. If the statement discloses any material information about the Property that is unacceptable to Buyer, Buyer may cancel this Contract by written notice to Seller within 3 days from receipt of Seller’s written statement. (_____) (_____) - (_____)(_____) W. Foreign Investment in Real Property Tax Act (“FIRPTA”): If a Seller is a “foreign person” as defined by FIRPTA, Section 1445 of the Internal Revenue Code requires Buyer to withhold 10% of the amount realized by the Seller on the transfer and remit the withheld amount to the Internal Revenue Service (IRS) unless an exemption applies. The primary exemptions are (1) Seller provides Buyer with an affidavit that Seller is not a “foreign person”, (2) Seller provides Buyer with a Withholding Certificate providing for reduced or eliminated withholding, or (3) the gross sales price is $300,000 or less, Buyer is an individual who purchases the Property to use as a residence, and Buyer or a member of Buyer’s family has definite plans to reside at the Property for at least 50% of the number of days the Property is in use during each of the first two 12 month periods after transfer. The IRS requires Buyer and Seller to have a U.S. federal taxpayer identification number (“TIN”). Buyer and Seller agree to execute and deliver as directed any instrument, affidavit or statement reasonably necessary to comply with FIRPTA requirements including applying for a TIN within 3 days from Effective Date and delivering their respective TIN or Social Security numbers to the Closing Agent. If Seller applies for a withholding certificate but the application is still pending as of closing, Buyer will place the 10% tax in escrow at Seller’s expense to be disbursed in accordance with the final determination of the IRS, provided Seller so requests and gives Buyer notice of the pending application in accordance with Section 1445. If Buyer does not pay sufficient cash at closing to meet the withholding requirement, Seller will deliver to Buyer at closing the additional cash necessary to satisfy the requirement. Buyer will timely disburse the funds to the IRS and provide Seller with copies of the tax forms and receipts. (_____) (_____) - (_____)(_____) X. 1031 Exchange: If either Seller or Buyer wishes to enter into a like-kind exchange (either simultaneously with closing or after) under Section 1031 of the Internal Revenue Code (“Exchange”), the other party will cooperate in all reasonable respects to effectuate the Exchange including executing documents; provided, however, that the cooperating party will incur no liability or cost related to the Exchange and that the closing shall not be contingent upon, extended or delayed by the Exchange.

57*

(_____) (_____) - (_____)(_____) Y. Additional Clauses ______________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________ ___________________________________________________________________________________________________________

58*

FARA-8

37* 38* 39* 40* 41* 42* 43* 44* 45* 46* 47* 48* 49* 50* 51* 52* 53* 54* 55* 56*

Rev. 10/04

© 2004


All Rights Reserved


Residential Sale and Purchase Contract: Comprehensive Addendum

Recommend Documents